JP Morgan Calling for a -40% Drop in the Market
This is an easy call to make by JP Morgan. If they are wrong, no one will remember. If they are right, they are the firm who predicted it would happen. A couple of things to point out. First, a -40% decline is not a correction. It is a bear market. Second, if this market were to lose as much as -40%, it probably would end up being -60% before it was all over with. In February the Dow barely dropped into correction territory (-10% and above) and they sold the most stock funds in history in a month according to TrimTabs. If this market starts getting big losses, investors will run for the hills. It will be like throwing gas on a fire.